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Do I Need a Contractor License to Flip Houses in Phoenix?

Homeowners should know that a contractor license is required in Phoenix AZ to renovate houses and work on residential contracting projects worth more than $750.

By: Jamie Eden | May 2019

Renovating an older house Renovating an older house photo by csp_Mirage3

Real estate investing can take on many forms. Whether it is buying a vacant lot for a future development project, renovating an existing home to increase its value or flipping houses, there are certain licensing requirements that must be met in each state.

With this in mind, it is important to note that licensing requirements will vary from state to state, and a contractor's license is only valid in the issuing state. Unfortunately, whether you are a contractor or homeowner, if you fail to acquire the proper licenses before you begin residential construction, then you might have to pay hefty fines.

Contractors that operate without appropriate licenses can even face jail time. If you renovate houses or flip houses in Phoenix AZ, then you should ensure that you have the right licenses before you start the job.

What Is a Contractor License?

As a general rule of thumb, licenses are required for both commercial and residential contracting jobs. Obtaining a contractor license involves passing exams and meeting a designated number of criteria which prove that the individual is competent in a specific trade.

Some states require contractors to have a registration in lieu of a license. The registration is typically a written record that clearly articulates who will be performing the work. Unlike a license, a registration does not guarantee any level of competency or trade expertise. In some instances, a contractor will have both a license and a registration before they begin work renovating houses.

Renovating Houses in Phoenix

If you live in Phoenix, AZ, and want to renovate a house, then your contractor will need to have a license. It is important that the contractor has the license before they bid on jobs that are valued above $750.

If you are planning on completing a commercial renovation, then once again your contractor will need to have the appropriate licensing. Fortunately, Arizona contractors can apply for a dual license to cover both residential and commercial properties. The latter licensing is especially helpful for completing work in condos and apartment buildings that have both residential and commercial spaces.

Contracting Services When Flipping Houses

In conclusion, if you want to avoid hefty fines, create a safe work environment and ensure that you are working with a skilled individual, then your chosen contractor must be licensed in the state of Arizona for all jobs valued over $750. Gain the peace of mind and high quality work that you deserve when you hire a licensed contractor.

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